Let me be clear: As a matter of Federal Indian tax policy based on over a century of treaties, respect for tribal sovereignty and empowerment of tribe self-determination, funds derived from trust resources that are distributed on a per…

Tribal governments, like State and local entities, are not subject to Federal taxation.

If the IRS is engaged or intends to engage in efforts to tax per capita distributions, as our tribal witnesses today will testify, it should cease such efforts immediately.

Shouldn't per capita income derived from trust resources be similarly tax exempt?

I would like to know why we are hearing reports from tribal leaders testifying today that IRS action in the field is not consistent with existing tax policy.

This guidance is most welcome. It is now beyond dispute that these payments should be tax exempt as they originated as damages in part as a result of the Federal Government's mismanagement of tribal trust accounts.

In its recent guidance on the tax-exempt status of settlement funds, the IRS relied on, I quote, 'the source of funds and origins of claims principles in making its determination.'

That tribal trust lands are not subject to taxation has been settled law for some time.

So in consideration with the Yakama tribe's questions, they would fall into that category and they would be included?

I think your testimony covers this.

Why is there a difference in policy from November 18, 2011, to April 3, 2012?

It would be a grave injustice to tax revenues originating from lands held for the exclusive use and benefit of American Indians, who secured their property at a great cost.

So it seems to me that is why we are here today. It is not to simplify the question. It changes what is tax exempt and direction to constituencies.

Mr. Chairman, if I could ask unanimous consent?

These assumptions are ludicrous and we must remember the seriousness of the situation and the tremendous damage the spill caused.

the words 'pause' and 'moratorium' have been interchanged.

Instead of wasting our time on this baseless investigation, we should be looking into how these reforms are progressing and how the industry is implementing them so we can prevent more lives from being lost.

As I mentioned in my opening statement, there is a great deal of frustration on the part of the Chairman and the majority of this Committee of not getting information from this Administration.